Brian borrowed $5,000 from his 401(k), and now he can't make his $150 a month payments. DailyFinance's Laura Rowley looks at the fallout from failing to keep up, and what Brian should do.





Increase your money and finance knowledge from home

Understanding Credit Scores

Credit scores matter -- learn how to improve your score.

View Course »

How to Buy a Car

How to get the best deal and buy a car with confidence.

View Course »

Add a Comment

*0 / 3000 Character Maximum

14 Comments

Filter by:
Baby

Hi Happy New year every one.
I'am a sweet, friendly, honest (sometimes too honest), caring girl in search of "the one".I've been single for over two years . so i got a profile(Autumngirl55?5) on ----Tallhub.C'0M----?-It is the largest club for tall men or pretty girls mate. maybe you wanna hit me up ,seriously !

January 03 2012 at 10:30 PM Report abuse rate up rate down Reply
Cheer

Happy New year every one.I'am a sweet, friendly, , caring girl in search of "the one".I've been single for over two years . so i got a profileon ----Tallhub.C'0M----?-It is the largest club for tall men or pretty girls mate. maybe you wanna hit me up ,seriously !

December 29 2011 at 10:22 PM Report abuse rate up rate down Reply
Dr. Jason Cabler

It's never a good idea to take out or borrow money from a retirement account. When you do that you are sabotaging yourself and especially your future. You can get hit with taxes and huge fees, but the worst part is that your money is not in that account, available to grow tax free to provide for your retirement many years down the road. Taking only a few thousand dollars out of your account can literally cost you six figures over time.

I just put up an article on my Celebrating Financial Freedom blog today about this subject entitled "Drunken Sailors and 401k's". You can read it here: http://www.cfinancialfreedom.com/CFFwordpress/?p=710

November 17 2011 at 12:21 PM Report abuse rate up rate down Reply
Jyjnhy

My best friend ,she just has announced her wedding with a millionaire old man Ronald who is the CEO of a MNC ! They met via ----SéêkSúɡárDαd.℃⊙M--.- ..it is the largest and best club for rich man date with young and beautiful woman and their admirers to chat online. …you don’t have to be rich there ,but you may meet one ,maybe you wanna check it out or tell your friends ! Borrowing from your 401k for something like purchasing a primary residence sometimes makes sense. What I rarely see mentioned is any options for paying back that loan if you suddenly lose your job - as at that time, the ENTIRE lump sum must be repaid within a very short (30 to 60 days) timeframe.

November 03 2011 at 10:11 PM Report abuse +2 rate up rate down Reply
ppa6519

Hope this will help http://i-mmm.com/en/

November 03 2011 at 2:58 PM Report abuse rate up rate down Reply
milofilomay

Im 55 , and i ready to retire at 62 . I have been real lucky . I work for a company that still has a defined pension plan ! I started my own IRA back in 1979 . I took the tax deduction per yr . There were no Roth IRAs at that time . I see most of the peopl my age only have a 401K . I never liked them because i did not have control of my own money! And having a 401K is not good being in the stock market ! People of my age who wanted to retire ? Cannot because wall street has lost over 60% of their 401ks value , if you had them since i had my IRA . Can you believe it ? Charging you for borrowing your OWN MONEY... LOL Wall street is nothing more than a bunch of crooks that pray on peoples greed . They today , do not even follow the rules of supply and demand ? The market one day says unemployment went down ? The market jumps 200 pts ? LOL The next day they fall 2-300 pts because of europes debt problem , HELLO these problems did not go away ! And they are not going to anytime soon !!!Nothing has changed at all in the US economy ! JUst more wall street BS , thats all ! Oil has huge swings , not even in line with supply and demand . No economy can stablize with out stable energy prices . another rule they do not follow ! So todays wall street does not have any clue on sound investing . This market swings too much for that as anyone can see !

November 03 2011 at 1:55 PM Report abuse rate up rate down Reply
whodeany1

We introduced different financial people to our workforce to help people gain an understanding of their money, their benefits and their future. In these gloomy times, too many people are finding out what the consequences of not being prepared means. Going a step further I would have to say that even the better than average person is nervous, scared, and reluctant to act. Not learning and not acting, means that you become a victim of your thought processes. A 401 K, just like an insurance product, a rewards credit card, etc all play a role in our lives. Some of which are not for everyone. People need to become money smart and the reason I read comments is to see if someone out there is willing to educate me. Being mad, upset, and giving up is not a plan. Certainly our overpaid politicians are not that concerned. If they were...they would get serious and work as a team. Until then its up to each of us to educate each other to protect ourselves and our families.

November 03 2011 at 12:27 PM Report abuse rate up rate down Reply
travelperu7

Welcome to South America, and welcome to Perú, the country with not only a fabulous Inca history, but also one of the 7 wonders of the world Machu Picchu , the Amazon jungle, beautiful tropical beaches, nice Andean mountains and much more! http://www.culturalandadventuretravel.com/

November 03 2011 at 11:20 AM Report abuse rate up rate down Reply
David S.

Borrowing from your 401k for something like purchasing a primary residence sometimes makes sense. What I rarely see mentioned is any options for paying back that loan if you suddenly lose your job - as at that time, the ENTIRE lump sum must be repaid within a very short (30 to 60 days) timeframe.

November 03 2011 at 10:06 AM Report abuse rate up rate down Reply
dabrownman

The only time to borrow from your 401-k is when you are comatose on your death bed and the person you gave your living will proxy takes a loan on it to steal the proceeds from you which is way better than defaulting on any 401-k loan

November 02 2011 at 12:13 PM Report abuse rate up rate down Reply